In 2021, J.P. Morgan’s dedicated blockchain business unit, Onyx, developed the Onyx token (XCN). It is essentially a digital asset designed to revolutionise cross-border payments and improve peer-to-peer lending and borrowing within the decentralised finance (DeFi) ecosystem. 

As an organisation, J.P. Morgan used to be somewhat sceptical about crypto and DeFi. Back in 2017, their CEO, Jamie Dimon, said crypto was a “fraud.” As recently as this year’s Davos conference, Dimon has said criticised Bitcoin for “doing nothing.”

However, using its special Onyx unit, J.P. Morgan has been reportedly exploring many initiatives involving blockchain, such as the “Quorum” project, which was done in conjunction with Ethlab, Ethereum’s startup lab. There is clearly therefore a conviction that blockchain, crypto’s underlying technology, has potential. While Dimon is still clear in his views, it seems J.P. Morgan’s stance on crypto has changed, and this is visible with the Onyx token. 

Many have come online to bash this cryptocurrency, calling it a scam, while others think it’s a great project with potential. But what does the Onyx Token actually represent? What are its intended use cases, and potential future price predictions based on current market dynamics?

The Onyx Token

Onyx serves as both a governance and utility token within the Onyx Protocol ecosystem. The Onyx Protocol ecosystem is a decentralised lending and liquidity platform operating on the Ethereum blockchain, governed by transparent and trustless smart contracts. At its core is the Onyx Protocol, facilitating peer-to-peer money market lending. Users engage with the ecosystem through XCN, the utility and governance token, enabling staking, governance participation, and transactions. 

The decentralisd autonomous organization (DAO), known as the Onyx DAO, oversees governance through on-chain voting and manages the Onyx Treasury. Users can deposit various digital assets as collateral, unlocking credit lines and borrowing capabilities within the protocol. Yield generation mechanisms, borrowing facilities, reserve factors, supply and borrow caps, and on-chain governance processes collectively ensure platform stability, security, and community involvement, underpinning the Onyx Protocol ecosystem’s functionality and resilience.

Sitting on the Ethereum blockchain, Onyx Token enables seamless and transparent transactions, allowing users to participate in various activities such as lending, borrowing, and voting on protocol decisions.

Core Features of Onyx Token

Dual Purpose: Onyx Token operates as a governance token, granting holders the right to influence protocol decisions, and as a utility token, facilitating transactions and activities within the Onyx Protocol.

Decentralised Finance (DeFi) Infrastructure: Onyx Token powers the Onyx Protocol, a decentralized platform for peer-to-peer lending and borrowing of digital assets, including Ethereum and ERC-20 tokens, with non-custodial custody via smart contracts.

Perpetual Credit Lines: Unlike traditional lending models, Onyx Protocol offers perpetual credit lines without monthly payments or expiration dates, as long as users maintain sufficient collateral.

Incentivisation Mechanisms: Onyx Token incentivizes user participation through staking mechanisms, where users can stake their tokens to earn rewards, ensuring the economic vitality of the protocol.

Onyx Token and the Onyx Protocol address various inefficiencies in cross-border payments and traditional lending systems. These technologies are a result of the collaboration between Kyriba and J.P. Morgan’s Onyx. This partnership designed the Onyx Token to streamline cross-border transactions, enhance payments transparency, and facilitate real-time settlements. Additionally, the decentralised nature of the Onyx Protocol empowers users to access credit lines without the constraints of conventional lending frameworks.

The Onyx Token enables real-time cross-border transfers through JPM Coin BDAs within Kyriba’s treasury management system, leveraging blockchain technology for enhanced speed, transparency, and certainty in payments.

Future Price Predictions

The price of Onyxcoin (XCN) is currently at $0.002044 with a market capitalization of $57 million. Predictions suggest a gradual increase in value over the coming years. 

By 2025, it’s estimated to range between $0.45 and $0.70, with an average price of $0.57. In 2026, the projected range is $0.56 to $0.77, with an average of $0.62. A correction is anticipated in 2027, with prices ranging from $0.40 to $0.62. This correction continues into 2028, with prices between $0.37 and $0.50. However, a rebound is expected in 2029, with prices ranging from $0.60 to $0.85, and by 2030, the price is predicted to reach between $0.65 and $0.95, reflecting the potential growth and adoption of Onyxcoin as blockchain technology becomes more prevalent across industries.

The increased adoption of cryptocurrenices generally, and indeed the Onyx Token within the DeFi ecosystem and mainstream financial institutions, could drive demand and potentially lead to price appreciation. The market also expects J.P. Morgan to invest in the continued development and enhancement of the Onyx Protocol, along with advancements in blockchain technology, which could further bolster the utility and value proposition offered by XCN.

Author: Makinde Adeniyi

For an update about Onyx, please see our latest story on the topic: What happened to Onyx by JP Morgan? | Disruption Banking

The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organisations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.